Due to farmer movement, corona period and elections in states, the budget of central government can be populist. In the Budget 2021, the government can focus in many sectors from agriculture.
New Delhi. People and industries have many expectations from the budget presented on February 1. There is also pressure on the government to revive the economy in the Corona era. However, the impact of the farmer movement and elections in states can also have an impact on the budget. The government, which is already facing the farmers’ displeasure, does not want to further annoy the farmers with the budget. Whereas the ruling BJP in the central government, trying hard to win elections in states like West Bengal, can entice people on occasions like budget. In view of these situations, News18 and CNBC Awaaz, through experts, learned in this special report that the sectors the government can focus on this time in the budget …
Farming: Farmers: Farmers will focus on strengthening rural economy, focus will be on agriculture.
This time the government can remain focused on farmers and farming to strengthen consumption by strengthening the rural economy. For this, the focus can be on incentive schemes for crop diversification. A plan to provide direct financial assistance to farmers can be worked out. Incentives can also be considered to farmers on growing alternative crops. According to sources, farmers will get an incentive of Rs 7000 per acre on alternative crops. An incentive of Rs 2000 will be given for sowing and Rs 5000 for the crop. Agricultural flying scheme and PM Kusum scheme can be expanded.
Jobs: If companies give new jobs, then
there is a possibility of getting good news on incentive jobs also. Companies are likely to get incentives if they give new jobs. The burden of social security on companies can be reduced. Not only this, there is a possibility of getting exemption from ESI contribution on new recruits. Employees with salary up to Rs 21,000 can get benefit. Through ESI, it is possible for employees to get financial, insurance benefits.
Taxation: Kovid cess can be found in the budget to compensate for the treasury
. Preparations can be made to apply covid cess in this year’s budget. There may be an announcement to increase the current surcharge. It is possible to increase the current cess and surcharge by 0.5%.
Health: Tax exemption on treatment of corona
There is a possibility of getting tax exemption on the cost of treatment of corona. This relief can be achieved under 80DDB. Corona may be considered for inclusion in Specific Disease.
Small industries: MSMEs will become easy to take loans
MSMEs ie small, medium and small scale industries are likely to get easy loans. The scheme for MSMEs can be brought on the TReDS portal. Also, NBFCs are likely to get the approval of the lending on the portal.
Industry: Discover, Discover in India scheme possible for Pharma
Discover in India scheme can be launched for pharma. Preparations can be made to promote API manufacturing. A new innovation policy can be introduced to promote R&D. A separate fund can be created for export.
Manufacturing: 10 thousand crore rupees scheme
for electronic can be announced , scheme for electronic manufacturing can be brought. Schemes over 10,000 Cr are possible to be announced. There is a possibility of getting incentives for making laptops, tablets. Printed circuit boards, smart watch are also included in this. Virtual headsets, ear buds may also be included.
Automobiles: Duty
imported electric vehicles will increase on imported electric trains to increase domestic production, now it can be expensive. Duty on CBU and SKD of EVs can be increased. A decision can be taken to increase EV manufacturing. Custom duty can be increased from 40% to 50%.
Infrastructure: Preparation to raise capital through tax free bonds
After agriculture, national banks can be created for the infrastructure sector which provides the most employment. Provision of 1 Lk Cr Rs Authorized Capital is possible. 20,000 Cr Initial Paid Up Capital is expected. Pension can be a part of provident fund. Preparations can be made to raise capital through tax free bonds. llFCL can be replaced by National Bank.
Small loans:
NBFCs struggling with contract will get liquidity NBFCs i.e. liquidity of NBFCs can be overcome. NBFCs with no rating are likely to get term loans. NBFCs will have dedicated funding. The TDS deduction rules are likely to provide relief to NBFCs.
Mutual Funds: Invest only Rs 5000 to become a millionaire, know how to invest
Education: Virtual labs, expansion of digital training, Master India campaign can also be announced
after the new education, fund can be raised for digital education infra. Virtual labs, digital training can be expanded. Operation digital board is likely to expand. Also, the announcement of the accomplished India campaign can also be done.
Challenges too… People have to build confidence to spend money
It will be a great challenge to raise confidence again in front of Finance Minister Nirmala Sitharaman in the economy facing Corona. The government will have to instill confidence in people to spend money. The government may have to set the goal of getting more people to get the corona vaccine. The finance minister may have to spend more money on vaccination. Booster dose will also have to be given to the finance minister by the problem sectors. The Finance Minister has to focus on growth without worrying about Fiscal Deficit.
Due to Corona, this year’s GDP situation has been like this
If we look at the first quarter of FY 2021, it was at -23.9%. The second quarter showed some major improvement in GDP and was -7.5%. It is estimated that it will remain -7.7% per cent in the entire financial year 2021.
In the panel, these experts pointed out the possible budget
CNBC-Awaaz panel member Rajya Sabha MP and Bharatiya Janata Party spokesperson Syed Zafar Islam, Rasna CMD Piruj Khambata, Apex Chamber of Commerce & Industry President Kapil Chopra, TeamLease Amit Vadera, head of business, and AK Bhattacharya, editorial head of Business Standards.
